Confusion stirs around Medicaid coverage following White House freeze on federal funds
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UPDATE 1/28/2025 AT 3:24 PM: A judge has temporarily blocked a freeze on federal grants and loans, according to the Associated Press. The block by U.S. District Judge Loren L. AliKhan will prevent the federal freeze until Monday.
DENVER, Colo. (KRDO) - Several state officials say they are getting reports that Medicaid portals are down across the country as the White House ordered a freeze on federal financial assistance.
According to CNN, the White House issued a memorandum saying federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance."
The freeze caused confusion and concern, as many had questions about what programs would be impacted.
The White House memo specified that the orders would not impact Medicare or Social Security Benefits, according to CNN.
On Tuesday, Press Secretary Karoline Leavitt told ABC News she would "check back" on whether Medicaid benefits would be impacted.
Senator Ron Wyden, a politician from Oregon, posted on X Tuesday afternoon saying Medicaid portals are down in all 50 states following the freeze orders.
NEW: My staff has confirmed reports that Medicaid portals are down in all 50 states following last night's federal funding freeze. This is a blatant attempt to rip away health insurance from millions of Americans overnight and will get people killed. https://t.co/6cqzQpyOoz
— Ron Wyden (@RonWyden) January 28, 2025
Later Tuesday afternoon, White House Press Secretary Leavitt posted on X saying, "The White House is aware of the Medicaid website portal outage. We have confirmed no payments have been affected — they are still being processed and sent. We expect the portal will be back online shortly."
The White House is aware of the Medicaid website portal outage.
— Karoline Leavitt (@PressSec) January 28, 2025
We have confirmed no payments have been affected — they are still being processed and sent.
We expect the portal will be back online shortly.
The order also created a wave of confusion for nonprofit organizations that rely on federal grants and loans.
Colorado Attorney General Phil Weiser announced on Tuesday that he plans to join other attorney generals in filing a lawsuit over a pause in federal funding.
“The Trump White House freeze on congressionally mandated federal aid is reckless and unprecedented. This action takes the power of the purse away from Congress, violates the separation of powers, and is already causing massive harm in Colorado, undermining delivery of healthcare, education, and public safety. As attorney general, I will continue to defend Coloradans and the Constitution. This government funding shutdown is illegal and must be stopped by the courts. That is why I will join other state attorneys general in filing a lawsuit to do just that.”-Colorado Attorney General Phil Weiser
On Tuesday, an Office of Management and Budget memo attempted to clarify some of the orders. According to CNN, officials said the freeze is not across the board and is instead targeted to executive orders that address immigration, foreign aid, climate and energy, DEI initiatives, gender identity and abortion.